Owned and Operated - A Plumbing, Electrical, and HVAC Business Growth Podcast Double Your Profit Day #10 Want Explosive Growth? Link Pay to Performance
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Aug 10, 2025 Discover how tying compensation to performance can supercharge your sales team. Learn why commission structures are vital for motivation and results. Unpack the powerful idea that incentives shape outcomes, and explore how poor compensation can demoralize your team. Hear a relatable story about a friend's lack of motivation and its impact, and get actionable tips for designing compensation plans that drive success. It's a wake-up call for any business owner looking to boost profits and foster a winning culture!
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Tie Pay Directly To Outcomes
- Do tie compensation to the outcomes you want rather than paying base salary alone.
- Doing so aligns sales behavior with business goals and increases results quickly.
Build A Commission Structure Now
- Do create a commission plan immediately for any salesperson currently on salary.
- Build the game so your team plays to produce the results you want.
Munger's Rule: Incentives Predict Outcomes
- Charlie Munger's rule applies: incentives predict behavior and outcomes in organizations.
- Evaluate pay through that lens to foresee the results your compensation will create.